This project focuses on the ethical managerial challenges that are faced by multinational enterprises (MNEs) while operating in emerging markets. Emerging markets are strategically important for many MNEs. There are, however, cultural and institutional differences between an MNE’s home market and emerging markets. The difficulties companies face are illustrated by incidents involving Swedish MNEs, where they acted in a way considered as unethical by stakeholders in the home and/or emerging markets. These events include corruption, child labour, environmental pollution, etc. Research confirms a need for more empirical studies focusing on the ethical issues of MNEs’ activities in emerging markets. Our purpose is to investigate how different institutionalised norms and behaviour as well as different types of stakeholders influence the firm’s ethical behaviour in emerging markets. This involves two levels of analysis: i) We analyse the interaction within the firm between corporate headquarters and subsidiary/country management, focusing on how the codes of conduct developed at HQ are transferred, explained, and disseminated in the local market. Moreover, what capabilities and routines can support this process. ii) We analyse the interactions between MNEs and stakeholders in the local market. For the purpose of this project, we will conduct an empirical study of two Swedish MNEs. The two companies will be studied on corporate level as well as in three bigger emerging markets.